Would buying a Scart cable, then hooking it to a Scart to RGB adapter (like this http://www.svideo.com/scartrgb.html) then plugging component into your TV not work?
If I understand correctly, it would work but not upscale. Which is probably the best solution cost-wise. Or I am just completely off.
I'd guess you'd need to get audio as well. Could you get audio from the RF output at the same time? An RF modulator would get you simulated stereo.